In a shaft furnace reduction process, iron ore or iron oxide in lump or pelletized form is fed into the upper portion of the furnace to form a burden of such lumps and/or pellets. Reducing gas is introduced into the mid-portion of the shaft furnace, usually about the periphery, through a bustle and tuyere arrangement. The reducing gas introduction temperature is generally about 850 C., which will not cause the burden to melt. The reducing gas moves upward through the burden, heating the burden and reacting with the iron oxide in it to form metallized iron. The reacted gas is removed from the top of the furnace, and the reduced iron pellets and/or lumps continue their downward movement, are usually cooled in the lower portion of the furnace, and are discharged for further use The efficiency of thermal and chemical exchange between the burden and the gas is highly related to the amount of fines generated within the furnace due to degradation of the lumps or pellets occurring from thermal shock and/or from reduction at low temperatures (less than about 750 C.).